Hearing - E-01345A-25-0105 - Arizona Public Service Company - Jun 08, 2026
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What procedural matters and exhibits are being addressed at the beginning of the hearing?
Let's go ahead and go on the record. Good morning, everyone. Welcome to day 13 in the matter of the application of Arizona Public Service Company for a hearing to determine the fair value of the utility property of the company for rate-making purposes, to fix a just and reasonable rate of return thereon, and to approve rate schedules designed to develop such return. This morning, I think, where we left off, we were going to pick up with, I believe, Mr. Gorman on behalf of the federal executive. But before we start, I'm just going to ask, are there any procedural matters we need to address at this time?
Yes, Your Honor, just very briefly. Last week with Mr. Bauer during his testimony, we frequently discussed APS Exhibit 39, but did not move to admit it. And so if it's all right, we can move to admit APS 39 at this time.
That matches up with my understanding here. So, okay, all right. APS39, are there any objections to the admission of APS39, which was the Moody's update to APS credit analysis? Oh. Okay, hold up. Ms. Langowski, I see you raising your hand. Did you want to chime in on this?
Afterwards.
Oh, you have something additional? Okay. All right. So you don't have an objection with regard to this particular exhibit being admitted? Whoa. No, I do
not.
Okay. That was interesting. Technical issue. Okay. All right. There being no objections, APS 39 is hereby admitted. Thank you, Your Honor. I will point out that there are other exhibits that others have offered or at least discussed and haven't been moved for admission either. I think the AG also has a couple that I haven't been keeping track, but I have noted that we've discussed them. But we can take them up at the appropriate time whenever it comes up. But in any event, so Ms. Langowski, you had an issue you wanted to take up?
Yeah, sorry. Is my Wi-Fi connection not that good this morning? Is it a little delayed?
You had a brief spurt there where you were frozen and then it like accelerated where you were like warp speed for a second.
Okay, lovely, lovely. Well, hopefully it figures itself out. But I just wanted to bring something up as far as orders today with the cross-examination. The school associations have been arranging with Vote Solar regarding some scheduling conflicts on their end. and we were hoping that either Vote Solar could take our place in the order across or that we could just go, we could just keep the normal order, but they could go ahead of us.
And this is with regard to Mr. Moe?
Yes.
Okay. I mean, I'm fine with it. You want so the Arizona schools would go, or Vote Solar would take the spot held by Arizona schools? Is that what you're proposing?
Yeah, yeah, whatever works for you.
Well, I could just push Arizona schools all the way to the end if that works better for you too.
I'm fine with just also going right after Vote Solar. I think, I guess that would be slightly preferred for me, but. Okay. I mean, I can do that. So schools right after Vote Solar. Okay. Thank you so much. Mm-hmm.
All right. All right. Anything else before we get started? Okay. Where we left off, Major Newton, you ready to call your first witness?
Yes. Thank you, Your Honor. FEA calls Mr. Mike Gorman. He'll be appearing virtually.
All right. Mr. Gorman, are you there?
Yes. Good
morning. Morning. If you can hear us okay, then hang on a second. We'll have the court reporter swear you in.
Good morning. Can you please raise your right hand? Do you solemnly swear or affirm that the testimony you're about to give will be the truth, the whole truth, and nothing but the truth?
I do.
Thank you.
Mr. Gorman, please state your name and your business address.
My name is Michael Gorman, M-I-C-H-A-E-L-G-O-R-F-A-N. My business address is 16690 Swingly Bridge Road, Chesterfield, Missouri.
Thank you. And by whom are you employed and in what capacity?
I'm employed by BAI Brubaker & Associates as a managing
principal. Thank you. And do you have in front of you what's been marked as FEA Exhibit 1 and FEA Exhibit 6? Yes. Do those contain your direct testimony and your sur rebuttal testimony?
It does, yes.
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Agenda
8 items
1
What procedural matters and exhibits are being addressed at the beginning of the hearing?
0:00–17:45
2
How does Mr. Gorman’s testimony introduce and critique the FRAM and related rate‑making issues?
17:45–2:37:39
3
What are the arguments for and against using the FRAM mechanism versus traditional rate cases?
2:37:39–3:16:23
4
How does the testimony of APS’s Director of Rates and Rate Strategy lead to the admission of key exhibits?
3:16:23–3:59:45
5
Why does the Commission focus on the solar cost‑of‑service methodology and the allocation of credits?
3:59:45–4:47:31
6
How is the net value of solar energy and the RCP/EPR‑6 credits calculated?
4:47:31–6:07:09
7
Why does APS claim its site‑load cost‑of‑service study must follow consistent, PURPA‑required methodology?
6:07:09–7:25:32
8
Does the grid‑access charge simply recover costs above what APS delivers to solar customers?
7:25:32–7:29:14
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